-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PlKNpYPsG0ZM+tdwJfbX0GGxQQAFoapKpUA25AO4/zQQyf5pOPcNLk0tIoI51Jt/ kbLJS4jNLAWEVgYp0YByzg== 0000897069-97-000269.txt : 19970616 0000897069-97-000269.hdr.sgml : 19970616 ACCESSION NUMBER: 0000897069-97-000269 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970503 FILED AS OF DATE: 19970613 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: NOBILITY HOMES INC CENTRAL INDEX KEY: 0000072205 STANDARD INDUSTRIAL CLASSIFICATION: MOBILE HOMES [2451] IRS NUMBER: 591166102 STATE OF INCORPORATION: FL FISCAL YEAR END: 1027 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-06506 FILM NUMBER: 97623620 BUSINESS ADDRESS: STREET 1: 3741 S W 7TH STREET CITY: OCALA STATE: FL ZIP: 34474 BUSINESS PHONE: 9047325157 MAIL ADDRESS: STREET 1: P O BOX 1659 CITY: OCALA STATE: FL ZIP: 34478-1659 10-Q 1 NOBILITY HOMES, INC. FORM 10-Q FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the Quarterly period ended May 3, 1997 Commission File number 0-6506 NOBILITY HOMES, INC. (Exact name of registrant as specified in its charter) Florida 59-1166102 (State or other jurisdiction (I.R.S. Employer of incorporation or Identification No.) organization) 3741 S.W. 7th Street Ocala, Florida 34474 (Address of principal executive offices) (Zip Code) (352) 732-5157 (Issuer's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Name of each exchange Title of each class on which registered None None Securities registered pursuant to Section 12(g) of the Act: Common Stock $.10 par value (Title of Class) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X ; No _____. (APPLICABLE ONLY TO CORPORATE ISSUERS) State the number of shares outstanding of each of the issuer's classes of common equity, as of June 14, 1997. 2,970,954 NOBILITY HOMES, INC. INDEX Page Number PART I. Financial Information Item 1. Financial Statements Consolidated Balance Sheets as of May 3, 1997 and November 2, 1996 3 Consolidated Statements of Income for the six months ended May 3, 1997 and May 4, 1996 4 Consolidated Statements of Cash Flows for six months ended May 3, 1997 and May 4, 1996 5 Notes to Consolidated Financial Statements 6 Item 2. Management's Discussion and Analysis of Results of Operations and Financial Conditions 7 PART II. Other Information and Signatures Item 6. Exhibits and Reports of Form 8-K 8 PART I. FINANCIAL INFORMATION NOBILITY HOMES, INC. CONSOLIDATED BALANCE SHEETS May 3, November 2, 1997 1996 ------ ----------- (Unaudited) ASSETS Current Assets: Cash and cash equivalents $1,739,180 $ 2,049,184 Accounts receivable - trade 919,496 642,626 Accounts receivable - trade, from related parties 493,351 350,379 Inventories 8,975,567 7,820,908 Deferred income taxes 145,400 145,400 Other current assets 495,396 368,466 ---------- ---------- Total current assets 12,768,390 11,376,963 Property, plant and equipment, net 1,248,921 1,166,429 Deferred income taxes - noncurrent 707,200 707,200 Other assets 1,613,470 1,620,046 ---------- ---------- Total assets $16,337,981 $14,870,638 ========== ========== LIABILITIES & STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,123,924 $ 1,368,168 Accrued expenses 1,116,718 692,737 Other liabilities 594,886 553,477 ---------- ---------- Total liabilities 2,835,528 2,614,382 ---------- ---------- Stockholders' equity: Preferred stock, $.10 par value, 500,000 Shares authorized, none issued -- -- Common stock, $.10 par value, 10,000,000 shares authorized, 3,436,790 shares issued 343,679 343,679 Additional paid in capital 2,345,715 2,345,715 Retained earnings 12,493,126 11,246,929 Less treasury stock at cost, 465,836 shares (1,680,067) (1,680,067) ---------- ---------- Total stockholders' equity 13,502,453 12,256,256 ---------- ---------- Commitments and contingencies -- -- ---------- ---------- Total liabilities and stockholders' equity $16,337,981 $14,870,638 ========== ========== NOBILITY HOMES, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three Months Ended Six Months Ended May 3, May 4, May 3, May 4, 1997 1996 1997 1996 Net sales $ 9,506,324 $ 9,207,200 $ 18,499,829 $ 16,193,358 Net sales - related part 98,376 116,305 150,863 244,125 ----------- ----------- ------------ ------------ Total net sales 9,604,700 9,323,505 18,650,692 16,437,483 Less cost of goods sold (7,108,823) (6,936,108) (13,935,411) (12,113,490) Gross profit 2,495,877 2,387,397 4,715,281 4,323,993 Selling, general and administrative expenses (1,419,325) (1,359,924) (2,785,896) (2,523,037) ----------- ---------- ------------ ------------ Operating income 1,076,552 1,027,473 1,929,385 1,800,956 Other income (expenses): Interest income 19,131 1,571 37,821 4,872 Interest expense -- (15,104) -- (19,891) Miscellaneous income 49,302 10,739 55,991 24,930 ----------- ---------- ------------ ------------ 68,433 (2,794) 93,812 9,911 ----------- ---------- ------------- ------------ Income before provision for income taxes 1,144,985 1,024,679 2,023,197 1,810,867 Less provision for income taxes (440,000) (389,000) (777,000) (686,000) Net income $ 704,985 $ 635,679 $ 1,246,197 $ 1,124,878 =========== ========== ============ ============ Weighted average shares outstanding 2,970,954 2,932,439 2,970,954 2,932,439 Earnings per share Net income $ .24 $ .22 $ .42 $ .38 =========== ========== ============ ============
NOBILITY HOMES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended May 3, May 4, 1997 1996 Cash flows from operating activities: Net income $ 1,246,197 $ 1,124,867 Adjustments to reconcile net income to net cash flows provided by (used in) operating activities: Depreciation and amortization 72,000 64,486 (Increase) decrease in: Accounts receivable-trade (276,870) (336,845) Accounts receivable-trade from related parties (142,972) 286,837 Inventories (1,154,659) (1,292,495) Other current assets (126,930) (186,765) Increase (decrease) in: Accounts payable (244,244) (273,735) Accrued expenses 423,981 81,527 Other current liabilities 41,409 166,883 ------------ ------------ Net cash flows (used in) operating activities (161,990) (365,240) ------------ ------------ Cash flows from investing activities: Purchase of equipment (148,014) (80,180) ------------ ------------ Net cash flows (used in) investing activities (148,014) (80,180) ------------ ------------ Cash flows from financing activities: Proceeds from exercise of stock options -- 130,000 Revolving credit line -- 661,251 Principal payment on notes payable - other -- (6,644) ------------ ------------ Net cash flows provided by financing activities -- 784,607 ------------ ------------ Increase (Decrease) in cash and cash equivalents (310,004) 339,187 Cash and cash equivalents at beginning of year 2,049,184 932,432 ------------ ------------ Cash and cash equivalents at end of quarter $ 1,739,180 $ 1,271,619 ============ ============ Supplemental disclosure of cash flow information Interest paid $ -- $ 19,891 ============ ============ Income taxes paid $ 712,500 $ 650,000 ============ ============ Supplemental disclosure of non-cash activities Issuance of common stock for certain assets and liabilities see note 3 "Notes to consolidated financial statements" $ -- $ 252,000 ============ ============ NOBILITY HOMES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. The unaudited financial information included in this report includes all adjustments which are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods. The operations for the three months ended May 3, 1997 are not necessarily indicative of the results of the full fiscal year. Certain information and footnote disclosure normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the Securities Exchange Commission rules and regulations governing form 10- Q. The condensed financial statements included in this report should be read in conjunction with the financial statements and notes thereto included in the Registrant's November 2, 1996 form 10-K annual report. 2. Inventories Inventories are carried at the lower of cost or market. Cost of finished home inventories is determined on the specific identification method. Other inventory costs are determined on a first-in, first-out basis. Cost components of inventories are material, labor and plant overhead. The cost of goods sold for the six months ended May 3, 1997 and May 4, 1996 reflects opening and closing inventories as follows: May 3, November 2, May 4, November 4, 1997 1996 1996 1995 ---------- ----------- ---------- ----------- Raw Materials $ 564,654 $ 554,255 $ 557,227 $ 530,061 Work-in-process 95,158 95,279 64,160 73,068 Finished homes 7,423,299 6,302,097 6,587,314 5,366,658 Pre-owned manu- factured home 241,623 311,133 259,240 292,374 Model home furniture and other 650,833 558,144 705,686 523,998 --------- --------- --------- --------- $8,975,567 $7,820,908 $8,173,627 $6,786,159 ========= ========= ========= ========= 3. Acquisition. On November 22, 1995, the Company acquired three manufacturing home sales centers in Florida in an asset acquisition by issuing 18,000 shares common stock valued at $252,000. This transaction was accounted for using the purchase method of accounting; accordingly, the purchased assets have been recorded at their estimated fair market value at the date of acquisition. This treatment resulted in approximately $74,195 of cost in excess of net assets acquired, which is being amortized on a straight-line basis over 15 years. The results of operations of the acquired businesses have been included in the consolidated financial statements since the date of acquisition. Nobility Homes, Inc. Management's Discussion And Analysis Of Results Of Operations And Financial Condition Results of Operations Net sales for the three months ended May 3, 1997 were $9,604,700 compared to $9,323,505 for the same period last year. Net sales for the six months ended May 3, 1997 increased 13.5 percent to $18,650,692 as compared to $16,437,483 a year ago. This increase in sales was primarily due to the sales to non-related dealers increasing to $4,032,257 for the first six months of 1997 compared to $2,210,044 for the same period last year. The Company had fifteen retail sales centers in full operation during the first six months of 1997 as compared to twelve retail sales centers in full operation for the first quarter of 1996 plus the acquisition during that quarter of three existing retail sales centers. Same store sales volume for the six months of 1997 compared to the same period last year was approximately the same. Gross profit, as a percentage of net sales, was approximately 26 percent in the second quarter of 1997, up from 25.6% in the same period last year. Gross profit, as a percentage of sales, decreased approximately 1 percent in the first six months of 1997 versus the same period last year. The decrease in gross profit was primarily due to the loss of Prestige retail profits from the approximately $2.0 million of increased sales to the Company's non-related dealers. Selling, general and administrative expenses, as a percentage of net sales, fluctuated very little and was approximately 15 percent for the three and six month periods of 1997 and 1996. As a result of the factors discussed above, net income for the second quarter of 1997 was $704,985 or $.24 per share, compared to $635,229 or $.22 per share in 1996. For the six months ended May 3, 1997 net income was $1,246,197 or $.42 per share, compared to $1,124,867 or $.38 per share as of May 4, 1996. Liquidity and Capital Resources Cash and cash equivalents were $1,739,180 at May 3, 1997 compared to $2,049,184 as of November 2, 1996. Inventories increased to $8,975,567 as of May 3, 1997 as compared to $7,820,908 at the end if fiscal year 1996. The increase in inventory is primarily due to the purchase of one existing manufacturing home retail sales center and a greater number of sold retail homes in the process of being closed and funded. The Company maintains a revolving credit agreement with a major bank providing for borrowings up to $2.5 million and a second revolving line of credit agreement with a major bank which provides for borrowings up to $1.5 million. These two agreements provide the Company with an additional $4.0 million of working capital for use in connection with its overall operations. The Company in March 1997 acquired one additional existing manufactured home retail sales center in North Central Florida for $85,000 cash. In November 1995 the Company acquired three retail sales centers in Florida in an asset acquisition by issuing 18,000 shares of common stock with a fair market value of $252,000. Consistent with normal practice, the Company s operations are not expected to require significant capital expenditures during fiscal 1997. Working capital requirements for inventory for any new sales centers will be met through a combination of internal sources and the revolving credit lines discussed above. Part II. Other Information And Signatures Item 6. Exhibits And Reports On Form 8-K Exhibit 27 Financial Data Schedule Signatures In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant has caused this report to be signed on its behalf by the undersigned, there unto duly authorized. NOBILITY HOMES, INC. DATE: June 13, 1997 By: /s/ Terry E. Trexler Terry E. Trexler, Chairman, President and Chief Executive Officer DATE: June 13, 1997 By: /s/ Thomas W. Trexler Thomas W. Trexler, Executive Vice President, Chief Financial Officer DATE: June 13, 1997 By: /s/ Lynn J. Cramer, Jr. Lynn J. Cramer, Jr., Treasurer and Principal Accounting Officer EX-27 2 FINANCIAL DATA SCHEDULE
5 THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED FINANCIAL STATEMENTS OF NOBILITY HOMES, INC. AS OF AND FOR THE PERIOD ENDED MAY 3, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 3-MOS NOV-01-1997 FEB-02-1997 APR-30-1997 1,739,180 0 1,412,847 0 8,975,567 12,768,390 2,588,453 1,339,532 16,337,981 2,835,528 0 0 0 343,679 13,158,774 16,337,981 9,604,700 9,604,700 7,108,823 1,419,325 0 0 0 1,144,985 440,000 0 0 0 0 704,985 .24 0
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